House Republicans have unveiled their version of the federal budget, calling for deep spending cuts to programs like Medicaid, food stamps, and Pell Grants -- a sharp contrast to President Barack Obama's budget proposals.

Chairman of the House Budget Committee Rep. Paul Ryan introduced the plan, saying GOP lawmakers want Americans to have an alternative when it comes to the nation's budget.

"We feel morally bound to offer a choice, and we have a legal obligation in our budget laws to produce a budget," he said. "The president's budget is putting us on a path of a debt crisis, of decline."

To avoid a financial crisis, House Republicans say it's necessary to be bold in spending cuts.

"All in all, what we're proposing here is to cut $5.3 trillion in spending from the president's budget," Ryan said.

The GOP plan also transfers Medicaid to states in an effort to save money, and balances the budget by 2040.

The budget would gradually raise the Medicare retirement age from 65 to 67.

In addition, House Republicans suggested cutting tax rates. The plan would mean only two tax rates for Americans: 10 percent and 25 percent. Currently, there are six rates.

The plan would also cut the business tax rate to 25 percent, and would almost completely get rid of taxes on overseas profits.

Republicans then want to do away with the alternative minimum tax that was originally created as a tax on the wealthy but now is hitting a growing number of middle class Americans.

"The plan stands in sharp contrast to the budget released by President Obama last month, which relies on tax increases on the wealthy and mostly leaves alone benefit programs," Ryan explained.

"This plan of action is about putting an end to empty promises from bankrupt government and restoring the fundamental promise of America," continued. "Insuring that our children have more opportunity than we do.

The White House and Democrats called the GOP plan unfair and criticized it for going after entitlement programs like Medicare.

House Republicans admit their plan has no chance of becoming law, but they wanted to distance themselves from the president and the Democratically-controlled Senate.

"This is what the Senate gets you by doing nothing, by not passing a budget for three years in a row," Ryan said. "This is a future that gives our children a diminished country. This is a future that ruins our economy."

Mark Martin

CBN News Reporter

Mark Martin is a reporter and anchor at CBN News, covering various issues from military matters to alternative fuels. Mark has reported internationally in the Middle East and traveled to Bahrain to cover stories on the U.S.S. Dwight D. Eisenhower. Follow Mark on Twitter @MarkMartinCBN and "like" him at Facebook.com/MarkMartinCBN.